PURCHASING A HOME
VANCOUVER BUYERS GUIDE
Purchasing a home is one of the most important financial decisions you will make in your lifetime. For most people, it will be the largest investment you will ever make, and one that will impact your life for many years to come.
It is important to surround yourself with trusted professionals to guide you through the process, and we will be there from your first call through to your congratulations call and beyond to ensure a smooth and seamless experience – taking care of the details so that you can focus on finding your new home!
The first thing we'll do is determine how much you can qualify for, so that you are confident you’re looking at the right homes, and that you are comfortable with what the monthly cost of your new home will be. We will help you determine this amount by discussing your hopes and future vision, as well as your current situation and lifestyle.
The minimum down payment will be 5% on the portion $500K and under, and 10% for the portion of purchase price above $500K. For any purchase with less than 20% down, an insurance premium is added to the mortgage and spread over the length of the mortgage, or amortization. For any property valued at $1M or higher and for any investment property, the minimum down payment is 20% and there is no insurance premium added to the mortgage. Gifted down payment is possible in most cases - please call for more specific details.
Lenders will need to see that you can pay the mortgage and homeowner costs, so we will ask to see confirmation of income such as employment letters and paystubs if you are an employee, and your T1 Generals and potentially financials and corporate documents if you are self-employed (click here to read more detail for self-employed borrowers). You will also need to confirm your down payment and closing costs, which in most cases means a 90 day history of any account(s) the money will be coming from.
Purchases of property are subject to Property Transfer Tax, which cannot be included in the mortgage. This tax is charged at a rate of:
- 1% of the fair market value up to $200,000,
- 2% of the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
- 3% on the portion of the fair market value greater than $2,000,000, and
- If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000
If you are a First-Time Homebuyer, please click here for first-time homebuyer exemptions and programs.
If you are a non-resident, please click here for more tax considerations.
If this will be an investment property purchase, please click here for more tax considerations.
Once we have your purchase price and down payment determined, we will lock in a rate for 120 days for you while you start actively looking for your home. This guarantees a maximum rate should interest rates increase while you are still looking.
Once you have found your new home, we will research the best mortgage options and rates for you again at that time, and walk you through the pros and cons of each lender offering to help you make the decision that feels most right for you.
Our team will help you from first call through to following up with your lawyer at closing to ensure your homebuying experience is a smooth and a happy one!
Call NOW or email me for help on how to start down the path of home ownership!